Required information [The following information applies to the questions displayed below.] Income statement and balance sheet data for Great Adventures, Inc., are provided below. GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net sales revenues Interest revenue Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Accumulated depreciation Accounts payable Interest payable $40,500 75,800 19,250 GREAT ADVENTURES, INC. Total assets Liabilities and Stockholders' Equity Current liabilities: 11,773 16,500 $205,950 520 Balance Sheets December 31, 2022 and 2021 163,823 $ 42,647 2022 $ 351,486 51,200 11,000 1,300 900,000 900,000 103,200 (29,250) $2,288,936 2021 $ 64,900 0 0 6,100 $ 24,800 $ 1,750 0 60,000 (9,000) $122,000 3,600 950
Required information [The following information applies to the questions displayed below.] Income statement and balance sheet data for Great Adventures, Inc., are provided below. GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net sales revenues Interest revenue Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Accumulated depreciation Accounts payable Interest payable $40,500 75,800 19,250 GREAT ADVENTURES, INC. Total assets Liabilities and Stockholders' Equity Current liabilities: 11,773 16,500 $205,950 520 Balance Sheets December 31, 2022 and 2021 163,823 $ 42,647 2022 $ 351,486 51,200 11,000 1,300 900,000 900,000 103,200 (29,250) $2,288,936 2021 $ 64,900 0 0 6,100 $ 24,800 $ 1,750 0 60,000 (9,000) $122,000 3,600 950
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
[The following information applies to the questions displayed below.]
Income statement and balance sheet data for Great Adventures, Inc., are provided below.
a.
b.
GREAT ADVENTURES, INC.
Income Statement
For the year ended December 31, 2022
Net sales revenues.
Interest revenue
Expenses:
Cost of goods sold
Operating expenses
Depreciation expense
Interest expense
Income tax expense
Total expenses
Net income
Assets
Current assets:
Cash
Accounts receivable
Inventory
Other current assets
Long-term assets:
Land
Buildings
Equipment
Accumulated depreciation
Accounts payable
Interest payable
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
GREAT ADVENTURES, INC.
Income tax payable
Other current liabilities
Notes payable (current)
Notes payable (long-term)
Stockholders' equity:
Common stock
Paid-in capital
Balance Sheets
December 31, 2022 and 2021
$40,500
75,800
19,250
11,773
16,500
Retained earnings
Treasury stock
Total liabilities and stockholders' equity
$205,950
520
Gross profit ratio. (Hint: Use net sales revenues)
Return on assets.
163,823
$ 42,647
C.
Profit margin. (Hint: Use net sales revenues)
d. Asset turnover. (Hint: Use net sales revenues)
e. Return on equity.
$
2022
351,486
51,200
11,000
1,300
900,000
900,000
2021
$ 64,900
%
%
%
times
%
0
0
6,100
0
0
103,200
60,000
(29,250) (9,000)
$2,288,936 $122,000
$ 24,800 $ 3,600
1,750
950
14,400
16,500
33,000
88,424
844,565
0
0
34,000
160,000
1,268,000
61,897
(210,000)
$2,288,936 $122,000
As you can tell from the financial statements, 2022 was an especially busy year. Tony and Suzie were able to use the
money received from borrowing and the issuance of stock to buy land and begin construction of cabins, dining facilities,
ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their first child.
2. Calculate the following profitability ratios for 2022. (Use 365 days in a year. Round your intermediate calculations and final
answers to 1 decimal place.)
33,600
0
35,450
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9cad10d6-7f17-41c4-9797-4437b73be31d%2F8029576e-914f-4eba-a209-936aa529b283%2F19au20v_processed.png&w=3840&q=75)
Transcribed Image Text:@
Required information
[The following information applies to the questions displayed below.]
Income statement and balance sheet data for Great Adventures, Inc., are provided below.
a.
b.
GREAT ADVENTURES, INC.
Income Statement
For the year ended December 31, 2022
Net sales revenues.
Interest revenue
Expenses:
Cost of goods sold
Operating expenses
Depreciation expense
Interest expense
Income tax expense
Total expenses
Net income
Assets
Current assets:
Cash
Accounts receivable
Inventory
Other current assets
Long-term assets:
Land
Buildings
Equipment
Accumulated depreciation
Accounts payable
Interest payable
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
GREAT ADVENTURES, INC.
Income tax payable
Other current liabilities
Notes payable (current)
Notes payable (long-term)
Stockholders' equity:
Common stock
Paid-in capital
Balance Sheets
December 31, 2022 and 2021
$40,500
75,800
19,250
11,773
16,500
Retained earnings
Treasury stock
Total liabilities and stockholders' equity
$205,950
520
Gross profit ratio. (Hint: Use net sales revenues)
Return on assets.
163,823
$ 42,647
C.
Profit margin. (Hint: Use net sales revenues)
d. Asset turnover. (Hint: Use net sales revenues)
e. Return on equity.
$
2022
351,486
51,200
11,000
1,300
900,000
900,000
2021
$ 64,900
%
%
%
times
%
0
0
6,100
0
0
103,200
60,000
(29,250) (9,000)
$2,288,936 $122,000
$ 24,800 $ 3,600
1,750
950
14,400
16,500
33,000
88,424
844,565
0
0
34,000
160,000
1,268,000
61,897
(210,000)
$2,288,936 $122,000
As you can tell from the financial statements, 2022 was an especially busy year. Tony and Suzie were able to use the
money received from borrowing and the issuance of stock to buy land and begin construction of cabins, dining facilities,
ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their first child.
2. Calculate the following profitability ratios for 2022. (Use 365 days in a year. Round your intermediate calculations and final
answers to 1 decimal place.)
33,600
0
35,450
0
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